Asset Protection

Policy Type: Executive Limitations
Policy Title: Asset Protection

The President may not allow assets to be unprotected, inadequately maintained, or unnecessarily risked.

Accordingly, the President may not:

  1. Fail to insure against theft and casualty losses in amounts consistent with replacement values or against liability losses to Board members, employees, or the college itself in amounts consistent with limits of coverage obtained by comparable organizations.
     
  2. Allow unbonded and/or uninsured personnel access to material amounts of funds. 
  3. Unnecessarily expose the college, the Board or employees to claims of liability.
  4. Make any purchase or commit the organization to any expenditure greater than $100,000 without prior board authorization, unless deemed an emergency purchase
     
  5. Make any purchase over $25,000 without soliciting sealed quotations, nor make any purchases between $5,000 and $24,999 without evaluating at least three quotations unless there is a policy exception, a single source supplier or other circumstance prohibiting competitive pricing. A summary report on transactions of $25,000 and above will be presented to the Board monthly.
     
  6. Make any purchase or award any contract where a conflict of interest exists.
     
  7. Fail to make a good faith effort to ensure purchases from diverse suppliers, including minority and women owned enterprises, or to initiate programs to acquaint vendors with purchasing policies and procedures.
     
  8. Receive, process or disburse funds under controls that are not sufficient to meet the auditor’s standards.
     
  9. Acquire, encumber or dispose of real property without Board approval.
     
  10. Place funds in accounts which are non-interest bearing or do not provide an earnings credit, or make investments which are not permitted by Michigan law. Further, no investments shall be made without compliance with, in order of priority, the following principles: a) security of the investment; b) receiving favorable consistent interest earned on the investment; c) local financial institutions receiving favorable consideration where (a) and (b) are relatively equal.
     
  11. Fail to protect property, information, and files from loss or damage.